2024 Ontario Rent Increase Cap of 2.5%: A Guide for Tenants and Landlords

The Ontario provincial government announced on June 17, 2024, that the annual rent increase cap will be limited to 2.5%. This guideline has been welcomed by tenants but met with dissatisfaction from landlords. To raise rent by more than 2.5%, landlords must present valid reasons and improvements to the Landlord and Tenant Board (LTB).

To increase rent, the tenant’s rental period must have lasted at least 12 months, or 12 months must have passed since the last rent increase. Additionally, landlords are required to notify tenants at least 90 days in advance. The notification must be made using the N1 – Notice of Rent Increase form provided by the LTB. Notifications via KakaoTalk, text messages, or email could lead to disputes.

Example:

Let’s assume a tenant moves in on May 1st and signs a lease for a studio with a monthly rent of $2,000. After 12 months, to notify the tenant of a 2.5% rent increase, the N1 form must be filled out and sent by January 31st. If the notice is sent on February 1st, the rent increase cannot be applied starting May 1st but will instead be applicable starting June 1st.

Additional Information:

The 2.5% rent increase guideline applies to various types of rental properties such as houses, apartments, basement apartments, and condos. However, this guideline does not apply to condos or houses built after November 15, 2018, where landlords can increase rent as much as they wish.

Consult with a REOCA-CERTIFIED Real Estate Agent:

For detailed information or inquiries regarding rent increases, consult with a REOCA-CERTIFIED real estate agent. They can provide the best solutions based on their expertise and experience.

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